1. CHAPTER 6 Decision Making
SPORTS AND ENTERTAINMENT MANAGEMENT
4/25/2018
CHAPTER 6 Decision Making
6.1 How Managers Make Decisions
6.2 Group Decision Making
6.3 Knowledge Management
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2. LESSON 6.1 HOW MANAGERS MAKE DECISIONS
GOALS
Discuss the types of decisions made by managers.
Describe the conditions faced by a manager when making a decision.
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3. IS IT DECISION MAKING OR PROBLEM SOLVING?
Decision making is the process of creating and choosing alternatives to reach a goal or objective.
Problem solving is the process of choosing actions to combat or resolve a problem.
All problem solving involves decision making. However, not all decision making involves problem solving.
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4. IS IT DECISION MAKING OR PROBLEM SOLVING?
Managers must learn how to effectively separate decision making from problem solving.
Decision making is a learned skill that managers practice.
Problem solving can be delegated to employees.
If employees solve problems, decision making is easier for the manager.
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5. DECISIONS—PROGRAMMED OR NONPROGRAMMED
Programmed decisions
Carefully thought out
9 out of 10 decisions made are programmed decisions (automatic response)
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6. DECISIONS—PROGRAMMED OR NONPROGRAMMED
Nonprogrammed decisions
Often called creative decision making or judgment decision making
More difficult and risky
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7. DECISIONS—PROGRAMMED OR NONPROGRAMMED
Intuitive approach
Based on guesses, hunches or intuition. (Ex: females can’t play sports)
Poorest method.
Optimizing approach
Time-tested methods, weigh decision criteria (Ex: salaries based on productivity)
Scientific approached, considered the best
Satisficing approach
Managers set a minimum standard of acceptance. (Ex: You pick a movie based on not waiting long)
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8. DECISION-MAKING STYLES
Autocratic decision making
Manager makes decisions alone without consulting anyone.
Consultative decision making
Shares problems and opportunities with employees.
Group-oriented decision making
Group is called upon to make decisions for the organization. (Employees, consultants, managers)
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9. CONDITIONS IMPACT DECISION MAKING
Degrees of certainty
If the manager does not know exactly what will happen, then the decision is being made in a state of uncertainty. This happens when they do not have good information.
Risk
Most managers seek to reduce or eliminate risk.
Individual differences
Information overload occurs when managers receive so much information that they become confused, or reluctant to make a decision.
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10. CONDITIONS IMPACT DECISION MAKING
Shortcuts
Rules of thumb
What mangers think
Managers “frame” decisions. Each manager defines a decision in a particular way. Personal feelings impact decisions.
Barriers
Does the organization stimulate decision making? Do they reward quick decisions? Are managers afraid to make decisions due to consequences?
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11. LESSON 6.2 GROUP DECISION MAKING
GOALS
Explain the advantages and disadvantages of group decision making.
Identify techniques for improving group decision making.
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12. TWO HEADS ARE BETTER THAN ONE
Group – two or more persons who interact for a specific purpose.
A group is generally cohesive—something attracts its members.
Being in a group is not easy. You must be willing to sacrifice beyond your personal needs.
Managing sports teams and events is a complex process and decisions are rarely made by just one individual.
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13. TWO HEADS ARE BETTER THAN ONE
Group performance is generally superior to individual performances.
Groups tend to generate more ways to solve problems.
Every manager needs to know when group decision making is called for and when it is not.
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14. ADVANTAGES OF GROUP DECISION MAKING
Different perspectives
More knowledge
Group ownership of and responsibility for the decision
Better understanding of decision
(Ex: McDonald’s and X-games)
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15. DISADVANTAGES OF GROUP DECISION MAKING
Bossy individual(s) tries to dominate
Pressure to conform even if you disagree
Self promotion of his/her own ideas
Groupthink
Happens when members try so hard to agree with one another that they ignore an individual member’s point of view.
Group decisions take longer to make.
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16. GOOD GROUP DECISION MAKING RESULTS IN GOOD TEAMS
A team defines the roles of members with respect to expectations and positions.
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17. TECHNIQUES FOR IMPROVING GROUP DECISION MAKING
Brainstorming – exposes a group of people to a problem and then allows them to generate ideas for solution. All ideas are considered.
Nominal group technique – group members work separately in the early phases to solve the problem. They share discoveries at the end . Group member then vote on the best solution.
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18. TECHNIQUES FOR IMPROVING GROUP DECISION MAKING
Delphi technique – Similar to nominal but does not include voting. Members answer a questionnaire and then reach a consensus.
Brainwriting – Review a problem and write a solution. Trade papers within the group and build on the ideas.
Synectics method – “makes the familiar strange and the strange familiar”. Most creative method.
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19. LESSON 6.3 KNOWLEDGE MANAGEMENT
GOALS
Describe the concept of knowledge management.
Explain how knowledge communities can benefit sports and entertainment managers.
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20. WHAT IS KNOWLEDGE MANAGEMENT?
Knowledge management is the ability of a manager to understand what is known in his or her organization and to use that knowledge effectively.
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21. WHAT KNOWLEDGE DOES AN ORGANIZATION HAVE?
Tangible knowledge
Resources can be licenses, contracts, brands, team name or event name.
Intangible knowledge
Resources might be employee experiences, traditions, or brainstorming results.
The reason to collect knowledge is to make decisions or take action.
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22. KNOWLEDGE CAN BE GENERATED
Bought
Ex: Faith Hill hires a songwriter.
Rented
Ex: consultant hired for short-term project
Designated
Ex: R&D (Research and Development dept)
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23. KNOWLEDGE CAN BE GENERATED
Meld one part of the business with another (Ex: Pixar puts computer animators with story development)
Growing and changing
Form knowledge communities with Internet and computer technologies.
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24. KNOWLEDGE COMMUNITIES
Knowledge communities create, capture, share, and maximize the use of knowledge about a particular subject.
Can be informal like hallway or water-cooler conversation.
Can be formal groups or networks on the Internet.
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25. KEY TO SUCCESSFUL KNOWLEDGE TRANSMISSION
The organization includes an internal and external information system. The system provides appropriate tools for acquiring knowledge.
The organization’s senior managers believe in knowledge acquisition and knowledge management.
The organization has an enlightened view toward gathering and sharing knowledge. It supports the idea that “two heads are better than one.”
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26. KEY TO SUCCESSFUL KNOWLEDGE TRANSMISSION
Continued
KEY TO SUCCESSFUL KNOWLEDGE TRANSMISSION
The organization believes in change and pursues it by creating links between knowledge and the overall organizational mission.
The organization encourages opportunities for learning and gaining knowledge. Employees constantly are challenged to learn new things.
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